Reading DGII? Track it free: the weekly brief, plus an alert if the thesis breaks. No credit card.
Track DGII free→Reading DGII? Track it free: the weekly brief, plus an alert if the thesis breaks. No credit card.
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NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-06-16
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
Recent financial performance is strong, and earnings quality is robust, cash backs up reported profits. Management's recent track record has been steady, and risk is moderate, with the sector backdrop providing a tailwind. Compared with sector peers, DGII is above typical. Peer multiples imply a price about 11% above where it trades (it looks cheap on this basis); the read is fair, quality intact. This assessment is provisional.
Daily closes. Earnings/event dots are placed inline.
A consensus fair price across 7 valuation methods, at three horizons. Current price $68.80. Estimates are diagnostics, not price targets. Short-horizon estimates are close to coin-flips, so confidence is a method-agreement read, not a prediction.
No-growth: today's peer multiple on trailing earnings. The headline read.
Embeds projected growth. Leans optimistic by design. Upside context.
We take the 12-month fair value above and grade our own number — how the market prices this name versus what we'd justify, and where the two diverge.
At $69 DGII trades at 30× p/e, below its 39× p/e peer median. Our $77 fair value sits above the price; high confidence. Analysts: $63–$75. Not investment advice.
One valuation read at a 12-month horizon, plus how price compares to peers and the company's own history.
The price implies about 11% below a flat-multiple fair value, below our forecast of about 12%. This describes what's priced in, not a forecast of the move.
Only a turbulent sector regime (Heating) — not the full expensive x weak x turbulent stack.
For similar setups historically (n=20,154): about 33% saw a 20%+ drawdown, and roughly 76% of those did not recover within the year. These are historical base rates for the cohort, not a forecast of this stock.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 73% of the time over the next year (vs 58% for the rest of the cohort, n=2777).
Over the trailing year it converted 2.98x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 69% of the time over the next year (vs 55% for the rest of the cohort, n=2129).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, Fed net liquidity, real (inflation-adjusted) rates.
The next print and the backdrop around it (sector regime and the AI cycle). Context for the path, not a forecast of returns.
EPS estimate $0.66 → $0.66 (+0.0% / 30d). 2 raised, 0 cut, 5 covering analysts.
0 upgrades, 0 downgrades / 30d. 83% of analysts rate Buy.
Market and fundamentals agree. Analysts are positioned bullishly on a fundamentally strong name.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
A guidance track record builds as the company issues and delivers on guidance.
What a normal day, a bad day, and the worst of the last year would mean for a $10,000 position.
On a typical day, $10k can swing ±$188.
How much price usually moves either way.
On a bad day, this stock has moved -$366.
A rough but not unusual down day (about the 95th percentile).
In the worst 12 months, $10k could have lost $1,349.
Deepest peak-to-trough drop in the last year.
Past results, not a forecast. Not investment advice.
The most important moves since the prior daily snapshot.
No material changes since the prior snapshot.
as of 2026-06-16
Specific, dated things to watch for, each with what would confirm it and what would prove it wrong.
Why it matters: Revenue growth is a top priority for Digi. Strong results would show progress.
Confirms:Q2 revenue growth exceeds 10% year over year.
Disproves:Q2 revenue growth falls below 5% year over year.
Recent news graded against this company's own objectives — whether it reinforces or challenges the thesis, and how confirmed it is.
Advances: Increase revenue growth
New product launch enhances revenue growth potential.
Conditional scenarios: if X happens, the view would shift in this direction. These are not predictions.
No upside scenarios in the latest snapshot.
No downside scenarios in the latest snapshot.
Recent SEC 8-K filings ranked by likely impact, confidence, and recency.
Results of Operations and Financial Condition . On May 6, 2026, Digi International Inc. (“Digi”) issued a press release and investor deck regarding Digi’s financial results for its second fiscal quarter ended March 31, 2026. A copy of Digi’s press release is attached hereto as Exhibit 99.1 and a copy of Digi's investor deck as Exhibit 99.2. The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended…
Whether the overall read has been drifting up or down lately, and how it's changed since last week.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Long-thesis check; widest uncertainty.
$63.00 – $75.00 (median $70.00) · 5 analysts · as of 2026-05-12
Looks cheaper than most peers in the same business.
Richer than its own typical valuation.
Trailing four: 2025-Q2, 2025-Q3, 2026-Q1, 2026-Q2
A side-by-side read on sector standing, valuation, and risk versus Communications Equipment.
| Stock | Sector standing | Valuation | Risk |
|---|---|---|---|
DGII Digi International Inc. | Above typical Show detailsSector percentile: 80 of 100 | fair | moderate |
CSCO Cisco | Above typical Show detailsSector percentile: 82 of 100 | full | moderate |
ANET Arista Networks | Typical Show detailsSector percentile: 70 of 100 | expensive | elevated |
LITE Lumentum | Typical Show detailsSector percentile: 40 of 100 | expensive | elevated |
MSI Motorola Solutions | Above typical Show detailsSector percentile: 84 of 100 | fair | moderate |
1 material management or governance event in the past 24 months, led by executive changes. Historically, Information Technology names rated stable grew net income 56% of the time over the next year (vs 62% for the rest of the cohort, n=797).
Not investment advice. As of 2026-06-16.
via XLK
Tailwind = sector leading the S&P 500; headwind = trailing. Both can be constructive. Historically, headwind regimes have averaged stronger forward returns than tailwind.
Context label only: describes the market state (e.g. real bear vs narrative panic, healthy uptrend vs late-stage froth). It is not a per-ticker buy/sell signal and does not predict factor performance.
Not investment advice. As of 2026-06-16.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on increasing revenue growth through strategic initiatives.
Improve operating income through cost management and efficiency.
Aim to increase gross profit through strategic pricing and cost control.
Why it matters: This guidance will show if Digi can maintain growth momentum after a strong Q2.
Confirms:Q3 revenue guidance falls within the range of $130 million to $134 million.
Disproves:Q3 revenue guidance falls below $130 million.
Why it matters: A stable operating margin shows good cost control. It also means the company is making money.
Confirms:Operating margin reported at or above 13% for Q3.
Disproves:The operating margin was below 13% in Q3.
Why it matters: Digi operates in a growth sector. A slowdown could hurt its performance.
Confirms:Sector revenue growth drops below its median of 5%.
Disproves:Sector revenue growth remains above its median.
Why it matters: Strong cash flow supports future growth and acquisition strategies.
Confirms:Cash flow from operations exceeds $41 million for Q3.
Disproves:Cash flow from operations falls below $41 million for Q3.
Why it matters: A rise above $20M would confirm progress in cost management and efficiency improvements. This could support a positive outlook.
Confirms:Operating income is over $20M in Q2. This shows good cost management.
Disproves:Operating income is under $17M in Q2. This shows possible issues with managing costs.
Why it matters: ARR growth is key for Digi's long-term value and reflects customer confidence.
Confirms:ARR growth reported at or above 25% year over year.
Disproves:ARR growth reported below 25% year over year.
Why it matters: Improving gross profit is a key focus. It signals better cost management and pricing power.
Confirms:Gross profit margin improves by more than 2% compared to the previous quarter.
Disproves:Gross profit margin declines or stays flat compared to the previous quarter.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers . On February 27, 2026, the Compensation Committee of the Board of Directors of Digi International, Inc. (the “Company”) approved supplemental equity awards under the Company’s 2021 Omnibus Incentive Plan on the following terms: • James J. Loch, the Company’s Executive Vice President, Chief Financial Officer and Treasurer, received a one-time perfor…
Results of Operations and Financial Condition . On February 4, 2026, Digi International Inc. (“Digi”) issued a press release regarding Digi’s financial results for its first fiscal quarter ended December 31, 2025. A copy of Digi’s press release is attached hereto as Exhibit 99.1. The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any fil…